1383EconomicsMedium
Suppose each of 20 neighbours on street values street repairs at €3000 the cost of the street repair is €40,000 which of the following statements is true?
AIt is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home
BNone of these answers are true
Cit is not efficient to have the street repaired
Dit is efficient for the government to tax the resident €2,000 each and repair the road
Correct answer
D. it is efficient for the government to tax the resident €2,000 each and repair the road
Explanation
The correct answer is it is efficient for the government to tax the resident €2,000 each and repair the road.